State Taxation

Texas has no state property tax

State Income Tax

Texas has no state personal income tax

Corporate Franchise Tax

Incorporated business chartered and authorized to do business in Texas are subject to the state franchise tax. Corporations are generally taxed at a rate of 1% of revenue margin based on the lease of (1) total revenue minus cost of goods sold, (2) total revenue minus compensation, or (3) total revenue times 70 percent. For entities engaged in retail and wholesale trade, the tax rate is .5%. Visit the Texas State Comptrollers Office at http://www.window.state.tx.us/ for more information.